Welcome Guest. Register Now!  

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-14-2007, 07:18 PM
TaxGuru's Avatar
Tax Guru
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,413
Blog Entries: 3
How does one write-off the initial "Franchise Fees"?

The IRS has classified Franchise Fees along with trademarks, trade name, goodwill, going concern value and covenants not to compete as Intangible assets.

The IRS has specified clearly in Code Section 197 the treatment of Intangible assets that have been acquired or placed in service after August 10, 1993 and that were used in Trade or Business for the production of income.

The IRS has stated that these assets have to be amortized over 15 years. We use the term amortization instead of depreciation for write off of intangible assets, and the term depreciation is used to identify write-off of tangible assets.

Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning